Jefferies' Global Head of Equity Strategy, Chris Wood, has recently adjusted his India portfolio, adding Ambuja Cements, Ixigo (Le Travenues Technology), and Lemon Tree Hotels, each with a 4% weighting. To make room for these new additions, Wood exited Reliance Industries and Axis Bank, and also reduced the weightings of ICICI Bank, REC, and JSW Energy by one percentage point each.
New Entrants:
- Ambuja Cements: The inclusion of Ambuja Cements, owned by the Adani Group, comes at a time when the company is expected to benefit from a GST rate cut on cement, bringing it down from 28% to 18%, effective September 22. HSBC also upgraded the stock to "buy," citing potential cost efficiencies and accelerated industry consolidation. YES Securities also recommends buying Ambuja Cements, noting its bullish breakout and potential upside.
- Ixigo (Le Travenues Technology): This online travel aggregator's stock jumped over 3% after Wood's inclusion in the India long-only portfolio. The stock has surged 88% over the past year, outperforming the Nifty India Tourism index. Ixigo has also recently partnered with Delhi Metro Rail Corporation (DMRC) and the Open Network for Digital Commerce (ONDC) to enable QR-based ticket bookings directly on the ixigo Trains app.
- Lemon Tree Hotels: The addition of Lemon Tree Hotels reflects a growing optimism around the consumer credit cycle.
Exits and Reductions:
- Reliance Industries (RIL): Wood's decision to sell Reliance Industries shares comes after the conglomerate's annual general meeting (AGM) on August 29. While RIL made several major announcements, including a foray into AI and the listing of Jio Platforms in 2026 via an IPO, some investors are concerned that the IPO route could lead to a holding company discount for the parent entity.
- Axis Bank: This is not the first time Wood has removed Axis Bank from his portfolio; he also did so in March 2025 to introduce MakeMyTrip Ltd.
- ICICI Bank, REC, and JSW Energy: The weightings of these stocks were reduced by one percentage point each to free up capital for the new additions.
Overall Strategy:
These changes reflect Wood's tactical shifts in response to the evolving Indian market dynamics. Earlier in the year, Wood expressed concerns about surging valuations, particularly in the mid-cap space. In June 2025, he dialed down parts of his India exposure amid a $13 billion promoter sell-off. Wood has been shifting away from investment-driven themes and adding consumer-facing and financial plays, citing a pivot in market focus from investment to consumption. He has also expressed growing comfort with urban consumption and aspirational discretionary demand.
Wood remains broadly bullish on the Indian market, which he considers the best structural growth story in global equities. However, he also acknowledges the high valuations and the ongoing supply of shares, which may cap the market's upside. He anticipates a pick-up in nominal GDP growth, which he believes is key for a meaningful rally in the Indian stock market.
